MINNEAPOLIS–An effort to launch the first black-led credit union here is one step closer to reality after receiving contingent charter approval from the state Department of Commerce.
Village Financial Cooperative Credit Union, whose creation was spurred on by the police killing of Philando Castile in 2016, seeks to financially support black residents in north Minneapolis by providing an alternative to payday loan companies and check-cashing services, according to the Minneapolis Star-Tribune.
The credit union’s organizers have now forwarded their application onto NCUA as they seek to be approved for deposit insurance under the NCUSIF.
Me’Lea Connelly, who is leading the effort to launch the new CU, told the Star-Tribune that approval by the state is a “milestone” and it is now on track to open by June 19, 2019, also known as Juneteenth, a date recognizing the emancipation of black slaves.
‘Confirms the Vision’
“It just confirms the vision that the community had, that they had their finger on the pulse of what really needs to happen to move the dial on economic racial inequities in our state,” Connelly was quoted as saying.
According to the Star Tribune, more than 1,600 people — mostly black residents and mostly from north Minneapolis — have pledged to join the cooperative, totaling $4.2 million in deposits, Connelly said. The co-op received initial financial support from the Jay & Rose Phillips Family Foundation of Minnesota, and the Minneapolis City Council and Mayor Jacob Frey allocated $500,000 for the credit union in its 2019 budget, according to the publication.
Connelly told the Star Tribune the credit union has a goal of 5,000 pledged members by the time it opens next year.